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Growing with Global Production Sharing: The Tale of Penang Export Hub

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  • Prema-chandra Athukorala

    ()

Abstract

Global production sharing—the division of production processes into geographically separated stages—is a central feature of economic globalization. This study seeks to broaden our understanding of global production sharing, and to explore policy options for developing countries to engage effectively in production networks through a case study of the export production hub in the State of Penang, Malaysia. The findings uphold Penang as a unique example of marrying national development strategy with emerging opportunities for international specialization within global production networks. The state government of Penang has not only attracted major multinational enterprises in global electronics industry but also helped them become deeply rooted in the economy through a well-design investment promotion strategy, infrastructure development, skills development and vocational training, and promoting a domestic vendor network around the branch plants of MNEs.

Suggested Citation

  • Prema-chandra Athukorala, 2011. "Growing with Global Production Sharing: The Tale of Penang Export Hub," Departmental Working Papers 2011-13, The Australian National University, Arndt-Corden Department of Economics.
  • Handle: RePEc:pas:papers:2011-13
    as

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    File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2011/wp_econ_2011_13.pdf
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    References listed on IDEAS

    as
    1. Yusuf , Shahid & Nabeshima, Kaoru, 2009. "Can Malaysia escape the middle-income Trap ? a strategy for Penang," Policy Research Working Paper Series 4971, The World Bank.
    2. Shahid Yusuf & M. Anjum Altaf & Kaoru Nabeshima, 2004. "Global Production Networking and Technological Change in East Asia," World Bank Publications, The World Bank, number 14918, August.
    3. Prema-chandra Athukorala, 2011. "Production Networks and Trade Patterns in East Asia: Regionalization or Globalization?," Asian Economic Papers, MIT Press, vol. 10(1), pages 65-95, Winter/Sp.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Athukorala, Prema-chandra, 2014. "How India Fits into Global Production Sharing: Experience, Prospects, and Policy Options," India Policy Forum, National Council of Applied Economic Research, vol. 10(1), pages 57-116.
    2. Prema-chandra Athukorala & Archanun Kohpaiboon, 2013. "Global Production Sharing, Trade Patterns and Industrialization in Southeast Asia," Departmental Working Papers 2013-18, The Australian National University, Arndt-Corden Department of Economics.
    3. Mitsuyo Ando & Fukunari Kimura, 2014. "Evolution of Machinery Production Networks: Linkage of North America with East Asia," Asian Economic Papers, MIT Press, vol. 13(3), pages 121-160, Fall.
    4. THORBECKE, Willem, 2012. "The Short- and Long-Run Effects of Exchange Rate Changes on the Japanese Electronics Industry," Discussion papers 12019, Research Institute of Economy, Trade and Industry (RIETI).
    5. Andrew Jia-Yi Kam, 2013. "International production networks and host country productivity: evidence from Malaysia," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 27(1), pages 127-146, May.
    6. Doner, Richard, 2012. "Success as Trap? Crisis Response And Challenges To Economic Upgrading in Export-Oriented Southeast Asia," Working Papers 45, JICA Research Institute.
    7. Millanida Hilman, Rafiazka & Widodo, Tri, 2015. "Global Production Sharing in Machinery and Transport Equipment Industry in the ASEAN4," MPRA Paper 79663, University Library of Munich, Germany.

    More about this item

    Keywords

    production sharing; production fragmentation; foreign direct investment; multinational enterprises;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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